(Strategic Managment) According to Porter, what determines the level of competitiveintensity in an industry? NO hand...
(Strategic Managment)
According to Porter, what determines the level of competitiveintensity in an industry?
NO hand write plz, thank you
Homework Answers
Answer
According to porter, level of competitive intensity in an industry is determined by the number of competitors, profit, growth, and costs. If there are numerous competitors, rivalry among the firms will be more intense, if these rivals are of equal in size, then intensity will be increased. When the industry growth is low, fixed costs are high, intensity will be higher. In addition to it, if the industry Products are undifferentiated and are commodities, intensity will be again high. Industry rivalry will be intense if competitors are strategically diverse, there is excess production capacity, high exit barriers, and there are costs or losses incurred due to ceasing operations, will intensify industry rivalry.
Variations in this factors will increase or decrease the competitive intensity in any industry.
.Referencee
Intensity of Rivalry (one of Porter’s Five Forces)
by James Wilkinson on July 24, 2013 in WikiCFO
https://strategiccfo.com/intensity-of-rivalry-one-of-porters-five-forces/
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(Strategic Managment)
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